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Welcome to Episode #455 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Are you tired of paying over $100 for a good value stock? Or even $1000?
The price of a stock doesn’t indicate whether it’s a value, but most mom-and-pop investors, including Tracey, don’t like buying the high-priced stocks. It’s just not as fun to buy one share of a $1500 stock versus 75 shares of a $20 stock for the same $1500.
Screening for Value Stocks Under $20
But are there any top value stocks that are trading for under $20?
Tracey set up a simple screen to find out. It included stocks under $20 which were also Zacks Rank #1 (Strong Buys), the top Zacks Rank. Hopefully, the Zacks #1 Rank should capture analyst bullishness.
For value, Tracey used a price-to-sales (P/S) ratio under 1.0. A P/S ratio of 0.7, for example, means an investor is buying $1.00 of sales for just $0.70. That’s a deal.
She didn’t screen for market cap or any other value fundamentals like low price-to-earnings (P/E) or price-to-book (P/B) ratios. But many of the stocks in the screen had low P/E and P/B ratios anyway.
Fox Factory Holdings Corp. designs and manufactures premium products that deliver championship-level performance for specialty sports and on- and off- road vehicles. In business for about 50 years, it is also a direct supplier of shocks, suspension, and components to leading powered vehicle and bicycle manufacturers. Fox Factory is a small cap company, with a market cap of $793 million.
Earnings have fallen the prior three years but are expected to rise 44% in 2026. Fox Factory is a value stock. Not only does it have a P/S ratio of just 0.5, but it also has a P/E ratio of 12.2.
Fox Factory is trading around $18.40.
Should a specialty products company like Fox Factory be on your short list?
Bausch Health is a global pharmaceutical company headquartered in Quebec, Canada which also owns a controlling interest in Bausch & Lomb, the eye health company. It’s a small cap company with a market cap of $2.2 billion.
In the second quarter of 2026, it saw revenue up 13% to $2.85 billion. It was the highest revenue in three years for the business, excluding Bausch & Lomb.
Earnings are expected to rise 13.6% in 2026. But the shares of Bausch Health have sold off this year, falling 18.4%. That has made it even cheaper.
Bausch Health now trades with a forward P/E of just 1.3. Yes, you read that right. Bausch Health is trading around $5.70 while the Zacks Consensus for 2026 earnings is calling for $4.35.
Should value investors put a pharmaceutical company like Bausch Health on their stocks under $20 list?
QuinStreet is a leader in performance marketplaces and technologies for the financial services and home services industries. It’s a small cap company like the other two, with a market cap of $817 million.
On Aug 6, 2026, QuinStreet reported its fiscal fourth quarter and full year 2026 results. It saw record full-year revenue of $1.3 billion, up 18% year-over-year. The company expects margin expansion in fiscal 2027 and to grow revenue at “strong” double digit rates. Analysts expect earnings to grow 26% in fiscal 2027, after growing earnings by 44.3% in fiscal 2026.
Shares of QuinStreet have plunged 19.5% in the last five days and are down 30.6% in the last month. It now trades around $14.25.
QuinStreet is a value stock with a P/S ratio of 0.7 and a forward P/E of 8.9. A P/E under 10 usually indicates deep value.
Is the recent stock weakness a buying opportunity in QuinStreet?
What Else Should You Know About Value Stocks Under $20?
View the Zacks #1 Rank List
Image: Bigstock
Screening for Hidden Gem Stocks Under $20
Key Takeaways
Welcome to Episode #455 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Are you tired of paying over $100 for a good value stock? Or even $1000?
The price of a stock doesn’t indicate whether it’s a value, but most mom-and-pop investors, including Tracey, don’t like buying the high-priced stocks. It’s just not as fun to buy one share of a $1500 stock versus 75 shares of a $20 stock for the same $1500.
Screening for Value Stocks Under $20
But are there any top value stocks that are trading for under $20?
Tracey set up a simple screen to find out. It included stocks under $20 which were also Zacks Rank #1 (Strong Buys), the top Zacks Rank. Hopefully, the Zacks #1 Rank should capture analyst bullishness.
For value, Tracey used a price-to-sales (P/S) ratio under 1.0. A P/S ratio of 0.7, for example, means an investor is buying $1.00 of sales for just $0.70. That’s a deal.
She didn’t screen for market cap or any other value fundamentals like low price-to-earnings (P/E) or price-to-book (P/B) ratios. But many of the stocks in the screen had low P/E and P/B ratios anyway.
3 Hidden Gem Stocks Under $20
1. Fox Factory Holdings Corp. (FOXF - Free Report)
Fox Factory Holdings Corp. designs and manufactures premium products that deliver championship-level performance for specialty sports and on- and off- road vehicles. In business for about 50 years, it is also a direct supplier of shocks, suspension, and components to leading powered vehicle and bicycle manufacturers. Fox Factory is a small cap company, with a market cap of $793 million.
Earnings have fallen the prior three years but are expected to rise 44% in 2026. Fox Factory is a value stock. Not only does it have a P/S ratio of just 0.5, but it also has a P/E ratio of 12.2.
Fox Factory is trading around $18.40.
Should a specialty products company like Fox Factory be on your short list?
2. Bausch Health Companies Inc. (BHC - Free Report)
Bausch Health is a global pharmaceutical company headquartered in Quebec, Canada which also owns a controlling interest in Bausch & Lomb, the eye health company. It’s a small cap company with a market cap of $2.2 billion.
In the second quarter of 2026, it saw revenue up 13% to $2.85 billion. It was the highest revenue in three years for the business, excluding Bausch & Lomb.
Earnings are expected to rise 13.6% in 2026. But the shares of Bausch Health have sold off this year, falling 18.4%. That has made it even cheaper.
Bausch Health now trades with a forward P/E of just 1.3. Yes, you read that right. Bausch Health is trading around $5.70 while the Zacks Consensus for 2026 earnings is calling for $4.35.
Should value investors put a pharmaceutical company like Bausch Health on their stocks under $20 list?
3. QuinStreet, Inc. (QNST - Free Report)
QuinStreet is a leader in performance marketplaces and technologies for the financial services and home services industries. It’s a small cap company like the other two, with a market cap of $817 million.
On Aug 6, 2026, QuinStreet reported its fiscal fourth quarter and full year 2026 results. It saw record full-year revenue of $1.3 billion, up 18% year-over-year. The company expects margin expansion in fiscal 2027 and to grow revenue at “strong” double digit rates. Analysts expect earnings to grow 26% in fiscal 2027, after growing earnings by 44.3% in fiscal 2026.
Shares of QuinStreet have plunged 19.5% in the last five days and are down 30.6% in the last month. It now trades around $14.25.
QuinStreet is a value stock with a P/S ratio of 0.7 and a forward P/E of 8.9. A P/E under 10 usually indicates deep value.
Is the recent stock weakness a buying opportunity in QuinStreet?
What Else Should You Know About Value Stocks Under $20?
Tune into this week’s podcast to find out.